In a strategic move to reduce reliance on China, state-owned Indian miner IREL is reportedly seeking partnerships with Japanese and South Korean companies for the commercial production of rare earth magnets, according to Reuters.
The company is reportedly exploring rare earth processing technology in Japan and South Korea, possibly via government-to-government agreements.
A source indicated to Reuters that the miner intends to formalise discussions with other nations regarding rare earth mining and technology collaborations.
Drive for rare earth self-reliance
Additionally, the miner plans to seek IREL board approval this year for the commercial production of magnets.
Neither IREL nor the Department of Atomic Energy, which is responsible for overseeing the company, provided a comment when requested.
India lacks commercial-scale facilities for refining and separating the complete spectrum of rare earth elements to high-purity standards.
In April, China halted exports of various rare earths and associated magnets.
This action by China, which dominates global rare earth mining, disrupted the supply chains vital for industries such as automotive, aerospace, and semiconductor manufacturing that rely on these materials.
IREL has approached Toyotsu Rare Earths India, a unit of Japanese trading house Toyota Tsusho, to explore opportunities for processing rare earth materials with Japanese companies, according to the report.
Toyotsu and IREL held an initial meeting to discuss the potential for Japanese magnet manufacturers to engage with IREL, including the proposal of a Japanese company establishing a plant in India.
In a significant development reported by Reuters in June, India’s state-owned Indian Rare Earths Limited (IREL) was directed to halt a longstanding rare earth export agreement with Japan.
This directive, impacting a 13-year-old accord, underscores India’s strategic pivot towards conserving its domestic rare earth supplies.
The move suggests a growing recognition within India of the critical importance of these materials for its own technological and industrial advancement, potentially signaling a shift towards greater self-reliance in the rare earth sector.
IREL’s domestic and global expansion
According to the source, IREL is ready to provide neodymium oxide, a rare earth element, to a technology partner.
This partner would then manufacture magnets and return them to India.
The state miner currently produces between 400 and 500 metric tons of neodymium per year.
This output has the potential to increase, contingent on the terms of the collaboration.
IREL intends to expand its domestic rare earth mining and processing operations.
In India, the mining of rare earth elements is a highly regulated sector, exclusively managed by IREL.
This public sector undertaking operates under the administrative control of the Department of Atomic Energy (DAE).
The strategic importance of rare earths, particularly for nuclear power generation and defence applications, necessitates this centralised control.
IREL’s primary role is to ensure a consistent and secure supply of these critical materials to the DAE, thereby supporting India’s self-reliance in strategic sectors.
This monopoly on rare earth mining reflects a broader national strategy to safeguard vital resources essential for national security and technological advancement.
The company is reportedly looking into rare earth mining ventures in Argentina, Australia, Malawi, and Myanmar, according to the report.
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